Bitcoin Risks Fifth Weekly Decline as Oil Surge and US-Iran Tensions Rattle Investors

Bitcoin remained near recent lows on Tuesday as financial markets confronted growing geopolitical uncertainty, concerns about technology-sector profitability and the upcoming US midterm elections. The cryptocurrency was heading toward its fifth straight weekly loss, a pattern that would place the current downturn among its longest historical losing streaks.

The broader market faced additional pressure after reports of US military action against Iran sent crude prices higher. Meanwhile, warnings from major investment firms about stretched market valuations and the risks surrounding the AI boom added to investor caution.

Bitcoin’s Downturn Approaches a Notable Milestone

Bitcoin traded around $76,710.93, leaving it on course for five consecutive weeks of losses. The cryptocurrency has fallen from roughly $87,000 to approximately $76,500 across weeks 40 through 44.

Such a run would rank as the joint third-longest weekly losing streak in Bitcoin’s history. The record remains eight consecutive losing weeks in 2022, spanning weeks 14 to 21. Bitcoin also recorded six straight weekly declines earlier in 2026, between weeks 3 and 8.

The latest weakness comes as investors prepare for Tuesday’s US midterm elections. Political uncertainty, geopolitical developments and pressure across technology stocks have combined to weigh on market sentiment.

Oil Rallies as Iran Conflict Raises Market Concerns

Energy markets moved higher following reports that US forces struck Iran’s Qeshm Island, located in the strategically important Strait of Hormuz.

The BBC reported the strikes, while US officials characterized the operation as limited and linked it to an incident in which Iran’s Islamic Revolutionary Guard Corps allegedly fired on a US aircraft. Iran’s state news agency IRNA also reported multiple explosions on the island on Monday.

The developments pushed West Texas Intermediate crude up 2% to approximately $98 per barrel. Brent crude climbed above $106 after the reports emerged.

The military escalation added another layer of uncertainty for investors just ahead of the US elections.

Apple Warning Highlights Rising AI Infrastructure Costs

Apple’s latest earnings offered a mixed signal for technology investors. The company reported fiscal fourth-quarter revenue and earnings above expectations on Monday, but warned that sharply rising memory chip prices and the expenses associated with operating AI tools could put pressure on margins.

The warning came despite Apple’s market capitalization remaining just below $5 trillion. Its shares dropped approximately 5% in premarket trading.

The Invesco QQQ Trust was slightly higher before the market opened, suggesting that weakness in individual technology stocks had not translated into an equally broad decline across the Nasdaq-linked fund.

Precious metals also retreated, with gold losing 1% to around $3,900 per ounce and silver falling 3.5% to below $49.

Ackman Sees Attractive Returns in Big Tech’s AI Spending

Pershing Square CEO Bill Ackman and Chief Investment Officer Ryan Israel have defended the aggressive AI infrastructure investments being made by major technology companies.

Amazon, Microsoft, Google and Meta are committing hundreds of billions of dollars to data centers and related infrastructure. Although these expenditures have raised questions about their impact on profitability, Ackman and Israel view them as investments designed to capture future growth rather than merely protect existing businesses.

Pershing Square maintains substantial holdings in Microsoft, Meta and Amazon. The firm estimates that spending on AI data centers could deliver pre-tax returns on invested capital of 15% to 25%.

Ackman and Israel described that estimate as conservative, arguing that the potential returns remain comfortably above the financing costs associated with the projects.

Pershing Square Holdings reported a 3.5% increase in net asset value during the third quarter, outperforming the S&P 500 by 120 basis points.

Elliott Warns That Market Optimism Could Reverse Quickly

Elliott Investment Management has taken a more cautious position on the broader market outlook.

The $80 billion investment firm, led by co-CEOs and co-CIOs Paul Singer and Jonathan Pollock, warned that the current market rally depends on several favorable conditions continuing simultaneously.

According to the firm’s assessment, a disruption to one or two of the factors supporting the boom could set off a cascading reversal. Investor sentiment could then shift from fear of missing out to what the firm described as fear of getting obliterated, or FOGO.

The Wall Street Journal, citing an investor letter, reported that Elliott returned 2% during the first nine months of 2026. The S&P 500 gained 13% over the same period, while a broad hedge fund index also outperformed Elliott.

The firm’s latest warning described nearly every major signal associated with the possibility of a substantial bear market as flashing.

Central Banks Continue Accumulating Gold

Official-sector demand for gold remained elevated during the third quarter, with central banks purchasing 321 metric tons of the metal. That marked their fastest buying pace since late 2024.

According to Bloomberg, citing World Gold Council figures, central banks purchased a total of 675 tons during the first nine months of the year.

China and Poland were the largest disclosed buyers, while Russia was the only major seller. The accumulation continued even as gold prices declined approximately 25% after the Iran war began in late February.

Liquid Restores LBTC’s One-to-One Bitcoin Backing

Bitcoin sidechain Liquid has restored full backing for its LBTC token, nearly two months after a software vulnerability resulted in the loss of approximately 4,000 BTC.

Liquid is operated by a federation led by Blockstream and provides a faster way to transfer Bitcoin between participating platforms than using the main Bitcoin network.

Although the token has returned to a one-to-one backing ratio, the federation has not revealed who supplied the Bitcoin needed to close the remaining shortfall. Direct withdrawals also continue to operate under enhanced security restrictions.

ADA Breaks Trendline Support as Selling Pressure Increases

Cardano’s ADA token dropped to approximately $0.188 on Tuesday, falling below an upward-sloping trendline that had previously supported its price. The broken trendline now represents resistance near $0.218.

Market derivatives data point to increasingly bearish positioning. CoinGlass recorded a long-to-short ratio of approximately 0.82, indicating around six bearish bets for every five bullish positions. The reading was also close to its lowest level in more than a month.

Funding rates remained slightly positive, suggesting that traders maintaining leveraged bullish positions were still paying to keep those trades open.

CryptoQuant highlighted sizable orders in both spot and futures markets, alongside dominant selling activity. The data do not necessarily mean that large holders are selling their own ADA, but they indicate that sell-side pressure has intensified.

ADA is also trading beneath its 50-day and 100-day moving averages, positioned around $0.216 and $0.215. These levels reinforce the resistance area between $0.215 and $0.218.

The relative strength index has approached 30, a commonly watched oversold threshold. If the decline continues, traders may look toward the next notable support near $0.155.